Updated almost 6 years ago on . Most recent reply
illegal to legal 2 unit
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $161,000
Cash invested: $14,000
This is two SFR detached buildings on 1 deed. 1 - 4bedroom cape cod and 1 - 2 bedroom apt above a 2 car garage. Buildings sit on a 3/4 acre lot w/ 2 septic systems.
What made you interested in investing in this type of deal?
This property had been operating as a 2 family illegally since 1968 in plain sight. I knew we could buy low due to that (and no inspections) with an easy approval for 2units. Virtually no updating needed (5k total with painting) and the appeal process for 2 units. 450 dollar app fee & 30 minutes in front of zoning & we got the green light. Main house rents for 1500 & apt w/ garage rents for 1200. 2700 rent roll, PITI 1600 after refi on a 20 year commercial and now the value is 255-260k.
How did you find this deal and how did you negotiate it?
Grandfathers home of a long time school friend
How did you finance this deal?
private money for 4 months and cash out refi to 20 year commercial
How did you add value to the deal?
got formal approval for 2 units
What was the outcome?
homerun
Lessons learned? Challenges?
always look for a value add especially when it involves an easy path to a favorable zoning ruling
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am an agent. Lender was First Keystone Bank (my branch was in Bethlehem Pa - Rep is Mike Santiago)